Excise dept earns Rs 9 crore by selling seven liquor vendshttps://indianexpress.com/article/cities/chandigarh/excise-dept-earns-rs-9-crore-by-selling-seven-liquor-vends/

Excise dept earns Rs 9 crore by selling seven liquor vends

Despite reducing the reserve price of the 10 vends by 5 per cent, the department failed to attract bidders for the remaining three vends — two in Sector 41 and one in Sector 21.

A liquor shop in Chandigarh. Express Archives
A liquor shop in Chandigarh. Express Archives

The excise and taxation department earned a revenue of Rs 9.38 crore by selling seven liquor vends, out of 10, during the second round of the allotment on Monday.

The reserved price of the 10 liquor vends was Rs 15.36 crore. Despite reducing the reserve price of the 10 vends by 5 per cent, the department failed to attract bidders for the remaining three vends — two in Sector 41 and one in Sector 21.

UT assistant excise and taxation commissioner Ravinder Kaushik said the department will reduce the reserve price of the remaining three vends further by 10 per cent to attract bidders. The reserve price for the remaining three liquor vends will be Rs 5.8 crore. The third round of allotment will be held by March 31.

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In the first round of allotment of vends on March 15, the department earned a revenue of Rs 184 crore by successfully selling 90 liquor vends divided into 43 groups against the reserve price of Rs 159 crore.

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The department registered an increase of Rs 24.92 crore over the revenue generated last year by selling the liquor vends. On February 26, the Chandigarh administration announced the excise policy 2016-17, which will come into force from April 1. Under the new policy, the minimum reserve price at which liquor vends will be auctioned has been increased from Rs 135 crore to Rs 177 crore.

The export fee has been reduced. According to the policy, a fee of 50 paisa per litre shall be charged on the export of country liquor and Indian-made foreign liquor (IMFL). Earlier, the export fee was Re 1 per litre.

Last year, the administration had reverted to its 14-year-old policy to sell vends in cluster, which proved to be a success, as all the vends were sold. In 2014, out of the total 217 liquor vends only 103 were sold in the first auction in April.